In a recent interview with Paul Barron, Hut 8 Mining Vice President Sue Ennis have sharedHer thoughts on how Bitcoin will rise above $100,000 next year and how the upcoming halving will affect BTC miners.
Hut 8 currently has 9,152 BTC in reserve, of which 8,305 BTC is unencumbered. The company’s installed hash rate ASIC is 2.6 exahashes per second, and Hut 8 has mined 44.6 BTC in July.
In the interview, Barron asked if increasing Bitcoin mining difficulty for miners would cause selling pressure on BTC. Citing data from the Hashrate Index, Barron noted that An increase in Bitcoin difficulty is often followed by a drop in BTC price.
Barron questions whether miners will sell Bitcoin due to the upcoming halving. This creates the need for more powerful ASICs. And will the price action before and after the halving of BTC be what investors expect?
Ennis replied, “There are many unprecedented things in the mining area right now. […] What is interesting is that the hash rate continues to rise despite the Bitcoin price trading during certain sessions.”
“What has changed now is that we see Bitcoin prices drop slightly, but hash rate continues to increase. […] I think what’s really exciting and different is that we’re seeing a lot of new entrants to the global Bitcoin network.”
Ennis cited six gigawatts of nuclear and renewable power being built in the Middle East. And with the governments of the region exploring Bitcoin mining as an alternative, the hash rate has been raised in a way that is independent of the price. This is very different from how miners operate in the US. traded on the stock exchange
Ennis suggests that in order to get out of trouble after the halving, miners need more than one way of monetization or revenue distribution. Beyond Bitcoin Mining
The revenue distribution will include exploring various artificial intelligence (AI) applications, allocating shelf space to GPUs for companies specializing in AI training, and potentially offering ASIC repair services at scale. industry or even participate in demand fulfillment projects with major energy producers and distributors.
Price will go up after halving and Spot BTC ETF.
Despite the Spot BTC ETF’s history of delays and rejections, Ennis is confident that the Spot ETF will hit the market. But she also warned that the approval could put pressure on miner stocks. This is because mining stocks are often used as a proxy investment for Bitcoin.
Regarding the percentage chance that a Bitcoin ETF will be approved by the end of 2023, Ennis said: “Exactly more than 50%. world’s largest For them when they go up in the ring and say this is what we want. And the amount of influence they have in the market is immense. So that’s a really good sign.”
Regarding potential targets for Bitcoin price, Ennis said:
“We will see $100,000 per Bitcoin in the next cycle, and that depends on whether BTC captures 2 to 5% of the $13 trillion gold market cap in institutional portfolios.” It can grab gold’s market cap by 2 to 3%. That would be an incredible price increase and push it above $100,000.”
refer : cointelegraph
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